France toughens its EV tax incentives for China-made cars

France has also committed to produce over 1 million EVs by the end of 2027.

According to a media report, France has released a list of electric vehicles which are eligible for federal tax incentives of up to 7,000 euros. However, the EVs made in China including the Dacia Spring & Tesla Model 3 have been excluded from the list.

In addition, Emmanuel Macron, President of France, has already unveiled another incentive meant to sway buyers away from Chinese models and towards French & European cars. This includes a 100 euros leasing scheme for EU-made EVs. The government also announced big cash incentives for first-time EV buyers as long the cars are made in the EU.

Coming back to the list, the “green bonus” was originally applicable to all EVs and offered flat 5000 euros cash incentives (7000 euros for low-income families). However, a third of those incentives were reportedly going to China-made EVs. The new incentive scheme now takes into account the car’s production & lifecycle, eliminating all Chinese and foreign-made cars.

This means cars like the Dacia Spring, models from MG (British branded EV owned by China’s SAIC Motor), BYD Atto 3 & Dolphin will lose out on the incentives, making them a bit costlier than before. Another big name is the Tesla Model 3, which Europe imports from Tesla’s Shanghai-based gigafactory, will lose out on the incentives as well.

This move is said to be part of the “buy from Europe” push by the French government. France has also committed to produce over 1 million EVs by the end of 2027.

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